State Codes and Statutes

Statutes > Wyoming > Title26 > Chapter1

CHAPTER 1 - SCOPE OF CODE

 

26-1-101. Short title.

 

Thisact constitutes the Wyoming Insurance Code.

 

26-1-102. Definitions.

 

(a) As used in this act:

 

(i) "Adjuster" means any individual who, forcompensation as an independent contractor, or as the employee of an independentcontractor, or as a salaried employee of an insurer, or for fee or commission,on behalf of the insurer investigates and negotiates settlement of claims arisingunder insurance contracts, except that an attorney-at-law who is licensed topractice law in this state, or a licensed agent or broker who adjusts orassists in adjustment of losses arising under policies issued through thatbroker or by the insurer represented by that agent, is not an adjuster for thepurposes of chapter 9 of this code;

 

(ii) "Agent" means any individual, firm or corporationappointed by an insurer to solicit applications for insurance or annuities orto negotiate insurance or annuities on its behalf;

 

(iii) "Alien" insurer means an insurer formed under thelaws of any country other than the United States of America or any of itsstates;

 

(iv) "Annuity" means a contract under whichobligations are assumed with respect to periodic payments where the making orcontinuance of all or some of the payments, or the amount of the payments, isdependent upon the continuance of human life, and a contract which includesextra benefits of the kinds set forth in W.S. 26-5-102 and 26-5-103 is anannuity if the extra benefits constitute a subsidiary or incidental part of theentire contract;

 

(v) "Authorized" insurer means an insurer authorizedby a subsisting certificate of authority issued by the commissioner to transactinsurance in this state;

 

(vi) "Broker", except as used in chapter 11 of thiscode, means a resident individual, firm or corporation organized under the lawsof the state of Wyoming who, not being an agent of the insurer, as anindependent contractor and on behalf of the insured, for compensation or feesolicits, negotiates or procures insurance or the renewal or continuancethereof for insureds or prospective insureds, other than himself;

 

(vii) "Charter" means articles of incorporation,agreement or association, charter granted by legislative act, or other basicconstituent document of a corporation or the power of attorney of theattorney-in-fact of a reciprocal insurer;

 

(viii) "Commissioner" means the insurance commissionerof this state;

 

(ix) "Department" means the department of insurance ofthis state, unless the context otherwise requires;

 

(x) "Domestic" insurer means an insurer formed underthe laws of Wyoming;

 

(xi) "Domicile" of an insurer means:

 

(A) As to Canadian insurers, Canada and the province in whichthe insurer's head office is located;

 

(B) As to other alien insurers authorized to transact insurancein one (1) or more states as provided in W.S. 26-3-130;

 

(C) As to alien insurers not authorized to transact insurancein one (1) or more states, the country under the laws of which the insurer wasformed;

 

(D) As to all other insurers, the state under the laws of whichthe insurer was formed.

 

(xii) "Foreign insurer" means an insurer formed underthe laws of any jurisdiction other than this state and includes an"alien" insurer unless otherwise distinguished by the context;

 

(xiii) "General lines agent" means an agent whotransacts any of the following kinds of insurance:

 

(A) Property insurance;

 

(B) Casualty insurance;

 

(C) Surety insurance;

 

(D) Marine and transportation insurance;

 

(E) Disability insurance, if transacted for an insurer alsorepresented by the same agent as to property or casualty insurance.

 

(xiv) "Industrial life insurance" means life insurancewritten under policies of face amount of one thousand dollars ($1,000.00) orless bearing the words "industrial policy" imprinted on the face ofthe policy and under which premiums are payable monthly or more often;

 

(xv) "Insurance" means a contract in which one undertakesto indemnify another against loss, damage or liability arising fromdeterminable hazards or fortuitous occurrences or to pay or allow a specifiedamount or determinable benefit in connection with ascertainable riskcontingencies;

 

(xvi) Except as otherwise provided in W.S. 26-22-501 through26-22-503, "insurer" means any person engaged as indemnitor, suretyor contractor in the business of entering into contracts of insurance or ofannuity;

 

(xvii) "Life agent" means an agent who transacts lifeinsurance or annuity business and includes also the transaction of disabilityinsurance on behalf of an insurer for whom the agent is also licensed as tolife insurance;

 

(xviii) "Managing general agent" means a person, firm,association or corporation meeting the definition of managing general agentunder W.S. 26-46-101;

 

(xix) "Mutual insurer" means an incorporated insurerwithout capital stock and the governing body of which is elected by itspolicyholders, except certain foreign insurers which the commissioner finds tobe organized on the mutual plan under the laws of their state or province ofdomicile, but having temporary share capital or providing for election of theinsurer's governing body on a reasonable basis by members or by policyholders andothers are not excluded as mutual insurers;

 

(xx) Except as used in chapter 31 of this code,"person" means an individual, insurer, company, association,organization, Lloyd's insurer, society, reciprocal insurer or interinsuranceexchange, partnership, syndicate, business trust, corporation, agent, generalagent, broker, service representative, adjuster and any legal entity;

 

(xxi) "Policy" means the written contract of or writtenagreement for or effecting insurance, by whatever name called, and includes allclauses, riders, endorsements and papers which are a part thereof;

 

(xxii) "Premium" means the consideration for insurance,by whatever name called, and any assessment, membership, policy, survey,inspection, service or similar fee or other charge in consideration for aninsurance contract is part of the premium;

 

(xxiii) "Reciprocal insurance" means insurance from aninterexchange among persons, known as subscribers, of reciprocal agreements ofindemnity, the interexchange being carried out through an attorney-in-factcommon to all persons involved;

 

(xxiv) "Reciprocal insurer" means an unincorporatedaggregation of subscribers operating individually and collectively through anattorney-in-fact to provide reciprocal insurance among themselves;

 

(xxv) "Service representative" means:

 

(A) An individual licensed as a service representative andemployed on salary by an insurer or managing general agent to work with agentsin soliciting, negotiating and carrying out insurance in the insurer or in theinsurers represented by the managing general agent;

 

(B) Officers and salaried nonresident traveling representativesof a mutual insurer licensed as service representatives and operating on thepremium deposit plan, or of a reciprocal insurer, not using resident agents forthe solicitation of business, who inspect risks or solicit insurance in thisstate but do not receive commissions thereon.

 

(xxvi) Repealed by Laws 2001, Ch. 201, 5.

 

(xxvii) "State" means any state, district, territory, commonwealthor possession of the United States of America and the Panama Canal Zone if usedin a context signifying a jurisdiction other than the state of Wyoming;

 

(xxviii) "Stock insurer" means an incorporated insurerwith its capital divided into shares and owned by its stockholders;

 

(xxix) "Surplus" in any determination or statement of aninsurer's financial condition means the excess of the insurer's assets over itsliabilities as ascertained in accordance with chapter 6 of this code;

 

(xxx) "Transact" with respect to a business ofinsurance means:

 

(A) Solicitation or inducement;

 

(B) Negotiations;

 

(C) Carrying out of a contract of insurance;

 

(D) Transaction of matters subsequent to the carrying out andarising out of a contract of insurance; or

 

(E) Any other aspects of insurance operations to which thiscode applies.

 

(xxxi) "Unauthorized" insurer means an insurer notauthorized as provided in paragraph (a)(v) of this section;

 

(xxxii) "This act" or "this code" means title26 of the Wyoming statutes;

 

(xxxiii) "Private health benefit plan" means any hospitalor medical policy or certificate, major medical expense insurance, hospital ormedical service plan contract or health maintenance organization subscribercontract. "Private health benefit plan" does not include accidentonly, credit, dental, vision, medicare supplement, long-term care or disabilityincome insurance, coverage issued as a supplement to liability insurance,worker's compensation or similar insurance, automobile medical paymentinsurance or any hospital or medical policy, major medical expense insurance,hospital or medical service plan or contract which by contract or productdesign is intended to provide coverage for six (6) months or less;

 

(xxxiv) "Public health benefit plan" means medicare,medicaid or other health benefit programs or coverages operated or maintainedby any governmental entity;

 

(xxxv) "Insurance producer" means a person required tobe licensed under the laws of this state to sell, solicit or negotiateinsurance, including, but not limited to, agents and brokers;

 

(xxxvi) "Fair value", "fair market value" or"market value" mean fair value as determined pursuant to the mostrecent National Association of Insurance Commissioners' accounting practicesand procedures manual;

 

(xxxvii) "Consumer reporting agency" means any person whodoes any of the following:

 

(A) Regularly engages, in whole or in part, in the practice ofassembling or preparing consumer reports for a monetary fee;

 

(B) Obtains information primarily from sources other thaninsurers;

 

(C) Furnishes consumer reports to other persons.

 

(xxxviii) "Insurance support organization" means:

 

(A) Any person who regularly engages, in whole or in part, inthe practice of assembling or collecting information about natural persons forthe primary purpose of providing the information to an insurance institution orinsurance producer for insurance transactions, including the furnishing ofconsumer reports or investigative consumer reports to an insurer or insuranceproducer for use in connection with an insurance transaction or the collectionof personal information from insurers, insurance producers or other insurancesupport organizations for the purpose of detecting or preventing fraud, materialmisrepresentation or material nondisclosure in connection with insuranceunderwriting or insurance claim activity;

 

(B) Notwithstanding subparagraph (A) of this paragraph thefollowing persons are not considered insurance support organizations forpurposes of this code:

 

(I) Insurance producers;

 

(II) Government institutions;

 

(III) Insurers;

 

(IV) Medical care institutions;

 

(V) Medical professionals.

 

(xxxix) "Insurance transaction" for the purposes ofparagraph (xxxviii) of this subsection, means any transaction involvinginsurance primarily for personal, family or household needs rather thanbusiness or professional needs and which entails the determination of anindividual's eligibility for an insurance coverage, benefit or payment or theservicing of an insurance application, policy, contract or certificate;

 

(xl) "Investigative consumer report" means a consumerreport or portion of a consumer report in which information about a naturalperson's character, general reputation, personal characteristics or mode ofliving is obtained through personal interviews with the person's neighbors,friends, associates, acquaintances or others who may have knowledge concerningthose items of information.

 

(b) As used in W.S. 26-2-116 through 26-2-124:

 

(i) "Examiner" means any individual or firmauthorized by the commissioner to conduct an examination under W.S. 26-2-116through 26-2-124;

 

(ii) "Person" means as defined in W.S. 26-1-102(a)(xx)and includes all affiliates of the entities referred to in that definition.

 

26-1-103. Compliance with insurance code required.

 

Noperson shall transact a business of insurance in Wyoming, or relative to asubject of insurance resident, located or to be performed in Wyoming, withoutcomplying with the applicable provisions of this code.

 

26-1-104. Applicability of provisions.

 

 

(a) This code does not apply to:

 

(i) Farm mutual property insurers as identified in chapter 26of this code, except as stated in that chapter;

 

(ii) Fraternal benefit societies as identified in chapter 29 ofthis code, except as stated in that chapter;

 

(iii) Health maintenance organizations as identified in chapter34 of this code, except as otherwise specifically provided in that chapter;

 

(iv) Transactions in mechanical breakdown insurance asidentified in chapter 37 of this code, except as otherwise provided in thatchapter.

 

26-1-105. Provisions relating to particular insurance to prevail overgeneral provisions.

 

Provisionsof this code relative to a particular kind of insurance or type of insurer orparticular matter prevail over provisions relating to insurance in general orinsurers in general or to the particular matter in general.

 

26-1-106. Captions or headings not to limit scope of provisions.

 

Thescope and meaning of any provision are not limited or otherwise affected by thecaption or heading of any chapter, section or provision.

 

26-1-107. General criminal and civil penalties.

 

(a) Each violation of this code for which a greater penalty isnot provided by another provision of this code or by other applicable laws ofthis state, in addition to any applicable prescribed denial, suspension orrevocation of certificate of authority or license, is a misdemeanor punishableupon conviction by a fine of not more than one thousand dollars ($1,000.00), orby imprisonment in the county jail for not more than six (6) months, or both.Each violation is a separate offense.

 

(b) Any person who violates any provision of this code, anylawful rule or final order of the commissioner or any final judgment or decreemade by any court, upon the commissioner's application, shall pay a civilpenalty in an amount the commissioner determines of not more than two thousandfive hundred dollars ($2,500.00) for each offense, or twenty-five thousanddollars ($25,000.00) in the aggregate for all such offenses within any three(3) month period. In the case of individual agents or adjusters, the civilpenalty shall be not more than five hundred dollars ($500.00) for each offenseor five thousand dollars ($5,000.00) in the aggregate for all such offenseswithin any three (3) month period. The penalty shall be collected from theviolator and paid by the commissioner, or the appropriate court, to the statetreasurer and credited as provided in W.S. 8-1-109.

 

(c) Before the commissioner imposes a civil penalty, he shallnotify the person, agent or adjuster accused of a violation, in writing,stating specifically the nature of the alleged violation and fixing a time andplace, at least ten (10) days from the date of the notice, when a hearing ofthe matter shall be held. After hearing or upon failure of the accused toappear at the hearing, the commissioner shall determine the amount of the civilpenalty to be imposed in accordance with the limitations expressed insubsection (b) of this section. Each violation is a separate offense.

 

(d) A civil penalty may be recovered in an action broughtthereon in the name of the state of Wyoming in any court of appropriatejurisdiction, and the court may review the penalty as to both liability andreasonableness of amount.

 

(e) The provisions of this section are in addition to and notinstead of any other enforcement provisions contained in this code.

 

26-1-108. Jurisdiction of insurance department.

 

 

(a) Notwithstanding any other provision of law, and except asprovided in this section, any person or other entity which provides insurancecoverage in this state for medical, surgical, chiropractic, physical therapy,speech pathology, audiology, professional mental health, dental, hospital oroptometric expenses, whether the coverage is by direct payment, reimbursement,or otherwise, shall be subject to the jurisdiction of the state insurancedepartment, unless the person or other entity shows that while providing theservices it is subject to the exclusive jurisdiction of another agency of thisstate or the federal government.

 

(b) A person or entity may show that it is subject to theexclusive jurisdiction of another agency of this state or the federal government,by providing to the insurance commissioner the appropriate certificate, licenseor other document issued by the other governmental agency which permits orqualifies it to provide those services.

 

(c) Any person or entity which is unable to show undersubsection (b) of this section that it is subject to the exclusive jurisdictionof another agency of this state or the federal government, shall submit to anexamination by the insurance commissioner to determine the organization andsolvency of the person or the entity, and to determine whether or not theperson or entity complies with the applicable provisions of this code.

 

(d) Any person or entity unable to show that it is subject tothe exclusive jurisdiction of another agency of this state or the federalgovernment, shall be subject to all appropriate provisions of this coderegarding the conduct of its business. If a person or entity is subject to theexclusive jurisdiction of another agency of this state or the federalgovernment, this fact shall be disclosed on all policy forms.

 

(e) Any production agency or administrator which advertises,sells, transacts or administers the coverage in this state described insubsection (a) of this section and which is required to submit to an examinationby the insurance commissioner under subsection (c) of this section, shall, ifthe coverage is not fully insured or otherwise fully covered by an admittedlife or disability insurer, nonprofit hospital service plan, or nonprofithealth care plan, advise every purchaser, prospective purchaser and coveredperson of such lack of insurance or other coverage. Any administrator whichadvertises or administers the coverage in this state described in subsection(a) of this section and which is required to submit to an examination by theinsurance commissioner under subsection (c) of this section, shall advise anyproduction agency of the elements of the coverage, including the amount of"stop-loss" insurance in effect.

 

State Codes and Statutes

Statutes > Wyoming > Title26 > Chapter1

CHAPTER 1 - SCOPE OF CODE

 

26-1-101. Short title.

 

Thisact constitutes the Wyoming Insurance Code.

 

26-1-102. Definitions.

 

(a) As used in this act:

 

(i) "Adjuster" means any individual who, forcompensation as an independent contractor, or as the employee of an independentcontractor, or as a salaried employee of an insurer, or for fee or commission,on behalf of the insurer investigates and negotiates settlement of claims arisingunder insurance contracts, except that an attorney-at-law who is licensed topractice law in this state, or a licensed agent or broker who adjusts orassists in adjustment of losses arising under policies issued through thatbroker or by the insurer represented by that agent, is not an adjuster for thepurposes of chapter 9 of this code;

 

(ii) "Agent" means any individual, firm or corporationappointed by an insurer to solicit applications for insurance or annuities orto negotiate insurance or annuities on its behalf;

 

(iii) "Alien" insurer means an insurer formed under thelaws of any country other than the United States of America or any of itsstates;

 

(iv) "Annuity" means a contract under whichobligations are assumed with respect to periodic payments where the making orcontinuance of all or some of the payments, or the amount of the payments, isdependent upon the continuance of human life, and a contract which includesextra benefits of the kinds set forth in W.S. 26-5-102 and 26-5-103 is anannuity if the extra benefits constitute a subsidiary or incidental part of theentire contract;

 

(v) "Authorized" insurer means an insurer authorizedby a subsisting certificate of authority issued by the commissioner to transactinsurance in this state;

 

(vi) "Broker", except as used in chapter 11 of thiscode, means a resident individual, firm or corporation organized under the lawsof the state of Wyoming who, not being an agent of the insurer, as anindependent contractor and on behalf of the insured, for compensation or feesolicits, negotiates or procures insurance or the renewal or continuancethereof for insureds or prospective insureds, other than himself;

 

(vii) "Charter" means articles of incorporation,agreement or association, charter granted by legislative act, or other basicconstituent document of a corporation or the power of attorney of theattorney-in-fact of a reciprocal insurer;

 

(viii) "Commissioner" means the insurance commissionerof this state;

 

(ix) "Department" means the department of insurance ofthis state, unless the context otherwise requires;

 

(x) "Domestic" insurer means an insurer formed underthe laws of Wyoming;

 

(xi) "Domicile" of an insurer means:

 

(A) As to Canadian insurers, Canada and the province in whichthe insurer's head office is located;

 

(B) As to other alien insurers authorized to transact insurancein one (1) or more states as provided in W.S. 26-3-130;

 

(C) As to alien insurers not authorized to transact insurancein one (1) or more states, the country under the laws of which the insurer wasformed;

 

(D) As to all other insurers, the state under the laws of whichthe insurer was formed.

 

(xii) "Foreign insurer" means an insurer formed underthe laws of any jurisdiction other than this state and includes an"alien" insurer unless otherwise distinguished by the context;

 

(xiii) "General lines agent" means an agent whotransacts any of the following kinds of insurance:

 

(A) Property insurance;

 

(B) Casualty insurance;

 

(C) Surety insurance;

 

(D) Marine and transportation insurance;

 

(E) Disability insurance, if transacted for an insurer alsorepresented by the same agent as to property or casualty insurance.

 

(xiv) "Industrial life insurance" means life insurancewritten under policies of face amount of one thousand dollars ($1,000.00) orless bearing the words "industrial policy" imprinted on the face ofthe policy and under which premiums are payable monthly or more often;

 

(xv) "Insurance" means a contract in which one undertakesto indemnify another against loss, damage or liability arising fromdeterminable hazards or fortuitous occurrences or to pay or allow a specifiedamount or determinable benefit in connection with ascertainable riskcontingencies;

 

(xvi) Except as otherwise provided in W.S. 26-22-501 through26-22-503, "insurer" means any person engaged as indemnitor, suretyor contractor in the business of entering into contracts of insurance or ofannuity;

 

(xvii) "Life agent" means an agent who transacts lifeinsurance or annuity business and includes also the transaction of disabilityinsurance on behalf of an insurer for whom the agent is also licensed as tolife insurance;

 

(xviii) "Managing general agent" means a person, firm,association or corporation meeting the definition of managing general agentunder W.S. 26-46-101;

 

(xix) "Mutual insurer" means an incorporated insurerwithout capital stock and the governing body of which is elected by itspolicyholders, except certain foreign insurers which the commissioner finds tobe organized on the mutual plan under the laws of their state or province ofdomicile, but having temporary share capital or providing for election of theinsurer's governing body on a reasonable basis by members or by policyholders andothers are not excluded as mutual insurers;

 

(xx) Except as used in chapter 31 of this code,"person" means an individual, insurer, company, association,organization, Lloyd's insurer, society, reciprocal insurer or interinsuranceexchange, partnership, syndicate, business trust, corporation, agent, generalagent, broker, service representative, adjuster and any legal entity;

 

(xxi) "Policy" means the written contract of or writtenagreement for or effecting insurance, by whatever name called, and includes allclauses, riders, endorsements and papers which are a part thereof;

 

(xxii) "Premium" means the consideration for insurance,by whatever name called, and any assessment, membership, policy, survey,inspection, service or similar fee or other charge in consideration for aninsurance contract is part of the premium;

 

(xxiii) "Reciprocal insurance" means insurance from aninterexchange among persons, known as subscribers, of reciprocal agreements ofindemnity, the interexchange being carried out through an attorney-in-factcommon to all persons involved;

 

(xxiv) "Reciprocal insurer" means an unincorporatedaggregation of subscribers operating individually and collectively through anattorney-in-fact to provide reciprocal insurance among themselves;

 

(xxv) "Service representative" means:

 

(A) An individual licensed as a service representative andemployed on salary by an insurer or managing general agent to work with agentsin soliciting, negotiating and carrying out insurance in the insurer or in theinsurers represented by the managing general agent;

 

(B) Officers and salaried nonresident traveling representativesof a mutual insurer licensed as service representatives and operating on thepremium deposit plan, or of a reciprocal insurer, not using resident agents forthe solicitation of business, who inspect risks or solicit insurance in thisstate but do not receive commissions thereon.

 

(xxvi) Repealed by Laws 2001, Ch. 201, 5.

 

(xxvii) "State" means any state, district, territory, commonwealthor possession of the United States of America and the Panama Canal Zone if usedin a context signifying a jurisdiction other than the state of Wyoming;

 

(xxviii) "Stock insurer" means an incorporated insurerwith its capital divided into shares and owned by its stockholders;

 

(xxix) "Surplus" in any determination or statement of aninsurer's financial condition means the excess of the insurer's assets over itsliabilities as ascertained in accordance with chapter 6 of this code;

 

(xxx) "Transact" with respect to a business ofinsurance means:

 

(A) Solicitation or inducement;

 

(B) Negotiations;

 

(C) Carrying out of a contract of insurance;

 

(D) Transaction of matters subsequent to the carrying out andarising out of a contract of insurance; or

 

(E) Any other aspects of insurance operations to which thiscode applies.

 

(xxxi) "Unauthorized" insurer means an insurer notauthorized as provided in paragraph (a)(v) of this section;

 

(xxxii) "This act" or "this code" means title26 of the Wyoming statutes;

 

(xxxiii) "Private health benefit plan" means any hospitalor medical policy or certificate, major medical expense insurance, hospital ormedical service plan contract or health maintenance organization subscribercontract. "Private health benefit plan" does not include accidentonly, credit, dental, vision, medicare supplement, long-term care or disabilityincome insurance, coverage issued as a supplement to liability insurance,worker's compensation or similar insurance, automobile medical paymentinsurance or any hospital or medical policy, major medical expense insurance,hospital or medical service plan or contract which by contract or productdesign is intended to provide coverage for six (6) months or less;

 

(xxxiv) "Public health benefit plan" means medicare,medicaid or other health benefit programs or coverages operated or maintainedby any governmental entity;

 

(xxxv) "Insurance producer" means a person required tobe licensed under the laws of this state to sell, solicit or negotiateinsurance, including, but not limited to, agents and brokers;

 

(xxxvi) "Fair value", "fair market value" or"market value" mean fair value as determined pursuant to the mostrecent National Association of Insurance Commissioners' accounting practicesand procedures manual;

 

(xxxvii) "Consumer reporting agency" means any person whodoes any of the following:

 

(A) Regularly engages, in whole or in part, in the practice ofassembling or preparing consumer reports for a monetary fee;

 

(B) Obtains information primarily from sources other thaninsurers;

 

(C) Furnishes consumer reports to other persons.

 

(xxxviii) "Insurance support organization" means:

 

(A) Any person who regularly engages, in whole or in part, inthe practice of assembling or collecting information about natural persons forthe primary purpose of providing the information to an insurance institution orinsurance producer for insurance transactions, including the furnishing ofconsumer reports or investigative consumer reports to an insurer or insuranceproducer for use in connection with an insurance transaction or the collectionof personal information from insurers, insurance producers or other insurancesupport organizations for the purpose of detecting or preventing fraud, materialmisrepresentation or material nondisclosure in connection with insuranceunderwriting or insurance claim activity;

 

(B) Notwithstanding subparagraph (A) of this paragraph thefollowing persons are not considered insurance support organizations forpurposes of this code:

 

(I) Insurance producers;

 

(II) Government institutions;

 

(III) Insurers;

 

(IV) Medical care institutions;

 

(V) Medical professionals.

 

(xxxix) "Insurance transaction" for the purposes ofparagraph (xxxviii) of this subsection, means any transaction involvinginsurance primarily for personal, family or household needs rather thanbusiness or professional needs and which entails the determination of anindividual's eligibility for an insurance coverage, benefit or payment or theservicing of an insurance application, policy, contract or certificate;

 

(xl) "Investigative consumer report" means a consumerreport or portion of a consumer report in which information about a naturalperson's character, general reputation, personal characteristics or mode ofliving is obtained through personal interviews with the person's neighbors,friends, associates, acquaintances or others who may have knowledge concerningthose items of information.

 

(b) As used in W.S. 26-2-116 through 26-2-124:

 

(i) "Examiner" means any individual or firmauthorized by the commissioner to conduct an examination under W.S. 26-2-116through 26-2-124;

 

(ii) "Person" means as defined in W.S. 26-1-102(a)(xx)and includes all affiliates of the entities referred to in that definition.

 

26-1-103. Compliance with insurance code required.

 

Noperson shall transact a business of insurance in Wyoming, or relative to asubject of insurance resident, located or to be performed in Wyoming, withoutcomplying with the applicable provisions of this code.

 

26-1-104. Applicability of provisions.

 

 

(a) This code does not apply to:

 

(i) Farm mutual property insurers as identified in chapter 26of this code, except as stated in that chapter;

 

(ii) Fraternal benefit societies as identified in chapter 29 ofthis code, except as stated in that chapter;

 

(iii) Health maintenance organizations as identified in chapter34 of this code, except as otherwise specifically provided in that chapter;

 

(iv) Transactions in mechanical breakdown insurance asidentified in chapter 37 of this code, except as otherwise provided in thatchapter.

 

26-1-105. Provisions relating to particular insurance to prevail overgeneral provisions.

 

Provisionsof this code relative to a particular kind of insurance or type of insurer orparticular matter prevail over provisions relating to insurance in general orinsurers in general or to the particular matter in general.

 

26-1-106. Captions or headings not to limit scope of provisions.

 

Thescope and meaning of any provision are not limited or otherwise affected by thecaption or heading of any chapter, section or provision.

 

26-1-107. General criminal and civil penalties.

 

(a) Each violation of this code for which a greater penalty isnot provided by another provision of this code or by other applicable laws ofthis state, in addition to any applicable prescribed denial, suspension orrevocation of certificate of authority or license, is a misdemeanor punishableupon conviction by a fine of not more than one thousand dollars ($1,000.00), orby imprisonment in the county jail for not more than six (6) months, or both.Each violation is a separate offense.

 

(b) Any person who violates any provision of this code, anylawful rule or final order of the commissioner or any final judgment or decreemade by any court, upon the commissioner's application, shall pay a civilpenalty in an amount the commissioner determines of not more than two thousandfive hundred dollars ($2,500.00) for each offense, or twenty-five thousanddollars ($25,000.00) in the aggregate for all such offenses within any three(3) month period. In the case of individual agents or adjusters, the civilpenalty shall be not more than five hundred dollars ($500.00) for each offenseor five thousand dollars ($5,000.00) in the aggregate for all such offenseswithin any three (3) month period. The penalty shall be collected from theviolator and paid by the commissioner, or the appropriate court, to the statetreasurer and credited as provided in W.S. 8-1-109.

 

(c) Before the commissioner imposes a civil penalty, he shallnotify the person, agent or adjuster accused of a violation, in writing,stating specifically the nature of the alleged violation and fixing a time andplace, at least ten (10) days from the date of the notice, when a hearing ofthe matter shall be held. After hearing or upon failure of the accused toappear at the hearing, the commissioner shall determine the amount of the civilpenalty to be imposed in accordance with the limitations expressed insubsection (b) of this section. Each violation is a separate offense.

 

(d) A civil penalty may be recovered in an action broughtthereon in the name of the state of Wyoming in any court of appropriatejurisdiction, and the court may review the penalty as to both liability andreasonableness of amount.

 

(e) The provisions of this section are in addition to and notinstead of any other enforcement provisions contained in this code.

 

26-1-108. Jurisdiction of insurance department.

 

 

(a) Notwithstanding any other provision of law, and except asprovided in this section, any person or other entity which provides insurancecoverage in this state for medical, surgical, chiropractic, physical therapy,speech pathology, audiology, professional mental health, dental, hospital oroptometric expenses, whether the coverage is by direct payment, reimbursement,or otherwise, shall be subject to the jurisdiction of the state insurancedepartment, unless the person or other entity shows that while providing theservices it is subject to the exclusive jurisdiction of another agency of thisstate or the federal government.

 

(b) A person or entity may show that it is subject to theexclusive jurisdiction of another agency of this state or the federal government,by providing to the insurance commissioner the appropriate certificate, licenseor other document issued by the other governmental agency which permits orqualifies it to provide those services.

 

(c) Any person or entity which is unable to show undersubsection (b) of this section that it is subject to the exclusive jurisdictionof another agency of this state or the federal government, shall submit to anexamination by the insurance commissioner to determine the organization andsolvency of the person or the entity, and to determine whether or not theperson or entity complies with the applicable provisions of this code.

 

(d) Any person or entity unable to show that it is subject tothe exclusive jurisdiction of another agency of this state or the federalgovernment, shall be subject to all appropriate provisions of this coderegarding the conduct of its business. If a person or entity is subject to theexclusive jurisdiction of another agency of this state or the federalgovernment, this fact shall be disclosed on all policy forms.

 

(e) Any production agency or administrator which advertises,sells, transacts or administers the coverage in this state described insubsection (a) of this section and which is required to submit to an examinationby the insurance commissioner under subsection (c) of this section, shall, ifthe coverage is not fully insured or otherwise fully covered by an admittedlife or disability insurer, nonprofit hospital service plan, or nonprofithealth care plan, advise every purchaser, prospective purchaser and coveredperson of such lack of insurance or other coverage. Any administrator whichadvertises or administers the coverage in this state described in subsection(a) of this section and which is required to submit to an examination by theinsurance commissioner under subsection (c) of this section, shall advise anyproduction agency of the elements of the coverage, including the amount of"stop-loss" insurance in effect.

 


State Codes and Statutes

State Codes and Statutes

Statutes > Wyoming > Title26 > Chapter1

CHAPTER 1 - SCOPE OF CODE

 

26-1-101. Short title.

 

Thisact constitutes the Wyoming Insurance Code.

 

26-1-102. Definitions.

 

(a) As used in this act:

 

(i) "Adjuster" means any individual who, forcompensation as an independent contractor, or as the employee of an independentcontractor, or as a salaried employee of an insurer, or for fee or commission,on behalf of the insurer investigates and negotiates settlement of claims arisingunder insurance contracts, except that an attorney-at-law who is licensed topractice law in this state, or a licensed agent or broker who adjusts orassists in adjustment of losses arising under policies issued through thatbroker or by the insurer represented by that agent, is not an adjuster for thepurposes of chapter 9 of this code;

 

(ii) "Agent" means any individual, firm or corporationappointed by an insurer to solicit applications for insurance or annuities orto negotiate insurance or annuities on its behalf;

 

(iii) "Alien" insurer means an insurer formed under thelaws of any country other than the United States of America or any of itsstates;

 

(iv) "Annuity" means a contract under whichobligations are assumed with respect to periodic payments where the making orcontinuance of all or some of the payments, or the amount of the payments, isdependent upon the continuance of human life, and a contract which includesextra benefits of the kinds set forth in W.S. 26-5-102 and 26-5-103 is anannuity if the extra benefits constitute a subsidiary or incidental part of theentire contract;

 

(v) "Authorized" insurer means an insurer authorizedby a subsisting certificate of authority issued by the commissioner to transactinsurance in this state;

 

(vi) "Broker", except as used in chapter 11 of thiscode, means a resident individual, firm or corporation organized under the lawsof the state of Wyoming who, not being an agent of the insurer, as anindependent contractor and on behalf of the insured, for compensation or feesolicits, negotiates or procures insurance or the renewal or continuancethereof for insureds or prospective insureds, other than himself;

 

(vii) "Charter" means articles of incorporation,agreement or association, charter granted by legislative act, or other basicconstituent document of a corporation or the power of attorney of theattorney-in-fact of a reciprocal insurer;

 

(viii) "Commissioner" means the insurance commissionerof this state;

 

(ix) "Department" means the department of insurance ofthis state, unless the context otherwise requires;

 

(x) "Domestic" insurer means an insurer formed underthe laws of Wyoming;

 

(xi) "Domicile" of an insurer means:

 

(A) As to Canadian insurers, Canada and the province in whichthe insurer's head office is located;

 

(B) As to other alien insurers authorized to transact insurancein one (1) or more states as provided in W.S. 26-3-130;

 

(C) As to alien insurers not authorized to transact insurancein one (1) or more states, the country under the laws of which the insurer wasformed;

 

(D) As to all other insurers, the state under the laws of whichthe insurer was formed.

 

(xii) "Foreign insurer" means an insurer formed underthe laws of any jurisdiction other than this state and includes an"alien" insurer unless otherwise distinguished by the context;

 

(xiii) "General lines agent" means an agent whotransacts any of the following kinds of insurance:

 

(A) Property insurance;

 

(B) Casualty insurance;

 

(C) Surety insurance;

 

(D) Marine and transportation insurance;

 

(E) Disability insurance, if transacted for an insurer alsorepresented by the same agent as to property or casualty insurance.

 

(xiv) "Industrial life insurance" means life insurancewritten under policies of face amount of one thousand dollars ($1,000.00) orless bearing the words "industrial policy" imprinted on the face ofthe policy and under which premiums are payable monthly or more often;

 

(xv) "Insurance" means a contract in which one undertakesto indemnify another against loss, damage or liability arising fromdeterminable hazards or fortuitous occurrences or to pay or allow a specifiedamount or determinable benefit in connection with ascertainable riskcontingencies;

 

(xvi) Except as otherwise provided in W.S. 26-22-501 through26-22-503, "insurer" means any person engaged as indemnitor, suretyor contractor in the business of entering into contracts of insurance or ofannuity;

 

(xvii) "Life agent" means an agent who transacts lifeinsurance or annuity business and includes also the transaction of disabilityinsurance on behalf of an insurer for whom the agent is also licensed as tolife insurance;

 

(xviii) "Managing general agent" means a person, firm,association or corporation meeting the definition of managing general agentunder W.S. 26-46-101;

 

(xix) "Mutual insurer" means an incorporated insurerwithout capital stock and the governing body of which is elected by itspolicyholders, except certain foreign insurers which the commissioner finds tobe organized on the mutual plan under the laws of their state or province ofdomicile, but having temporary share capital or providing for election of theinsurer's governing body on a reasonable basis by members or by policyholders andothers are not excluded as mutual insurers;

 

(xx) Except as used in chapter 31 of this code,"person" means an individual, insurer, company, association,organization, Lloyd's insurer, society, reciprocal insurer or interinsuranceexchange, partnership, syndicate, business trust, corporation, agent, generalagent, broker, service representative, adjuster and any legal entity;

 

(xxi) "Policy" means the written contract of or writtenagreement for or effecting insurance, by whatever name called, and includes allclauses, riders, endorsements and papers which are a part thereof;

 

(xxii) "Premium" means the consideration for insurance,by whatever name called, and any assessment, membership, policy, survey,inspection, service or similar fee or other charge in consideration for aninsurance contract is part of the premium;

 

(xxiii) "Reciprocal insurance" means insurance from aninterexchange among persons, known as subscribers, of reciprocal agreements ofindemnity, the interexchange being carried out through an attorney-in-factcommon to all persons involved;

 

(xxiv) "Reciprocal insurer" means an unincorporatedaggregation of subscribers operating individually and collectively through anattorney-in-fact to provide reciprocal insurance among themselves;

 

(xxv) "Service representative" means:

 

(A) An individual licensed as a service representative andemployed on salary by an insurer or managing general agent to work with agentsin soliciting, negotiating and carrying out insurance in the insurer or in theinsurers represented by the managing general agent;

 

(B) Officers and salaried nonresident traveling representativesof a mutual insurer licensed as service representatives and operating on thepremium deposit plan, or of a reciprocal insurer, not using resident agents forthe solicitation of business, who inspect risks or solicit insurance in thisstate but do not receive commissions thereon.

 

(xxvi) Repealed by Laws 2001, Ch. 201, 5.

 

(xxvii) "State" means any state, district, territory, commonwealthor possession of the United States of America and the Panama Canal Zone if usedin a context signifying a jurisdiction other than the state of Wyoming;

 

(xxviii) "Stock insurer" means an incorporated insurerwith its capital divided into shares and owned by its stockholders;

 

(xxix) "Surplus" in any determination or statement of aninsurer's financial condition means the excess of the insurer's assets over itsliabilities as ascertained in accordance with chapter 6 of this code;

 

(xxx) "Transact" with respect to a business ofinsurance means:

 

(A) Solicitation or inducement;

 

(B) Negotiations;

 

(C) Carrying out of a contract of insurance;

 

(D) Transaction of matters subsequent to the carrying out andarising out of a contract of insurance; or

 

(E) Any other aspects of insurance operations to which thiscode applies.

 

(xxxi) "Unauthorized" insurer means an insurer notauthorized as provided in paragraph (a)(v) of this section;

 

(xxxii) "This act" or "this code" means title26 of the Wyoming statutes;

 

(xxxiii) "Private health benefit plan" means any hospitalor medical policy or certificate, major medical expense insurance, hospital ormedical service plan contract or health maintenance organization subscribercontract. "Private health benefit plan" does not include accidentonly, credit, dental, vision, medicare supplement, long-term care or disabilityincome insurance, coverage issued as a supplement to liability insurance,worker's compensation or similar insurance, automobile medical paymentinsurance or any hospital or medical policy, major medical expense insurance,hospital or medical service plan or contract which by contract or productdesign is intended to provide coverage for six (6) months or less;

 

(xxxiv) "Public health benefit plan" means medicare,medicaid or other health benefit programs or coverages operated or maintainedby any governmental entity;

 

(xxxv) "Insurance producer" means a person required tobe licensed under the laws of this state to sell, solicit or negotiateinsurance, including, but not limited to, agents and brokers;

 

(xxxvi) "Fair value", "fair market value" or"market value" mean fair value as determined pursuant to the mostrecent National Association of Insurance Commissioners' accounting practicesand procedures manual;

 

(xxxvii) "Consumer reporting agency" means any person whodoes any of the following:

 

(A) Regularly engages, in whole or in part, in the practice ofassembling or preparing consumer reports for a monetary fee;

 

(B) Obtains information primarily from sources other thaninsurers;

 

(C) Furnishes consumer reports to other persons.

 

(xxxviii) "Insurance support organization" means:

 

(A) Any person who regularly engages, in whole or in part, inthe practice of assembling or collecting information about natural persons forthe primary purpose of providing the information to an insurance institution orinsurance producer for insurance transactions, including the furnishing ofconsumer reports or investigative consumer reports to an insurer or insuranceproducer for use in connection with an insurance transaction or the collectionof personal information from insurers, insurance producers or other insurancesupport organizations for the purpose of detecting or preventing fraud, materialmisrepresentation or material nondisclosure in connection with insuranceunderwriting or insurance claim activity;

 

(B) Notwithstanding subparagraph (A) of this paragraph thefollowing persons are not considered insurance support organizations forpurposes of this code:

 

(I) Insurance producers;

 

(II) Government institutions;

 

(III) Insurers;

 

(IV) Medical care institutions;

 

(V) Medical professionals.

 

(xxxix) "Insurance transaction" for the purposes ofparagraph (xxxviii) of this subsection, means any transaction involvinginsurance primarily for personal, family or household needs rather thanbusiness or professional needs and which entails the determination of anindividual's eligibility for an insurance coverage, benefit or payment or theservicing of an insurance application, policy, contract or certificate;

 

(xl) "Investigative consumer report" means a consumerreport or portion of a consumer report in which information about a naturalperson's character, general reputation, personal characteristics or mode ofliving is obtained through personal interviews with the person's neighbors,friends, associates, acquaintances or others who may have knowledge concerningthose items of information.

 

(b) As used in W.S. 26-2-116 through 26-2-124:

 

(i) "Examiner" means any individual or firmauthorized by the commissioner to conduct an examination under W.S. 26-2-116through 26-2-124;

 

(ii) "Person" means as defined in W.S. 26-1-102(a)(xx)and includes all affiliates of the entities referred to in that definition.

 

26-1-103. Compliance with insurance code required.

 

Noperson shall transact a business of insurance in Wyoming, or relative to asubject of insurance resident, located or to be performed in Wyoming, withoutcomplying with the applicable provisions of this code.

 

26-1-104. Applicability of provisions.

 

 

(a) This code does not apply to:

 

(i) Farm mutual property insurers as identified in chapter 26of this code, except as stated in that chapter;

 

(ii) Fraternal benefit societies as identified in chapter 29 ofthis code, except as stated in that chapter;

 

(iii) Health maintenance organizations as identified in chapter34 of this code, except as otherwise specifically provided in that chapter;

 

(iv) Transactions in mechanical breakdown insurance asidentified in chapter 37 of this code, except as otherwise provided in thatchapter.

 

26-1-105. Provisions relating to particular insurance to prevail overgeneral provisions.

 

Provisionsof this code relative to a particular kind of insurance or type of insurer orparticular matter prevail over provisions relating to insurance in general orinsurers in general or to the particular matter in general.

 

26-1-106. Captions or headings not to limit scope of provisions.

 

Thescope and meaning of any provision are not limited or otherwise affected by thecaption or heading of any chapter, section or provision.

 

26-1-107. General criminal and civil penalties.

 

(a) Each violation of this code for which a greater penalty isnot provided by another provision of this code or by other applicable laws ofthis state, in addition to any applicable prescribed denial, suspension orrevocation of certificate of authority or license, is a misdemeanor punishableupon conviction by a fine of not more than one thousand dollars ($1,000.00), orby imprisonment in the county jail for not more than six (6) months, or both.Each violation is a separate offense.

 

(b) Any person who violates any provision of this code, anylawful rule or final order of the commissioner or any final judgment or decreemade by any court, upon the commissioner's application, shall pay a civilpenalty in an amount the commissioner determines of not more than two thousandfive hundred dollars ($2,500.00) for each offense, or twenty-five thousanddollars ($25,000.00) in the aggregate for all such offenses within any three(3) month period. In the case of individual agents or adjusters, the civilpenalty shall be not more than five hundred dollars ($500.00) for each offenseor five thousand dollars ($5,000.00) in the aggregate for all such offenseswithin any three (3) month period. The penalty shall be collected from theviolator and paid by the commissioner, or the appropriate court, to the statetreasurer and credited as provided in W.S. 8-1-109.

 

(c) Before the commissioner imposes a civil penalty, he shallnotify the person, agent or adjuster accused of a violation, in writing,stating specifically the nature of the alleged violation and fixing a time andplace, at least ten (10) days from the date of the notice, when a hearing ofthe matter shall be held. After hearing or upon failure of the accused toappear at the hearing, the commissioner shall determine the amount of the civilpenalty to be imposed in accordance with the limitations expressed insubsection (b) of this section. Each violation is a separate offense.

 

(d) A civil penalty may be recovered in an action broughtthereon in the name of the state of Wyoming in any court of appropriatejurisdiction, and the court may review the penalty as to both liability andreasonableness of amount.

 

(e) The provisions of this section are in addition to and notinstead of any other enforcement provisions contained in this code.

 

26-1-108. Jurisdiction of insurance department.

 

 

(a) Notwithstanding any other provision of law, and except asprovided in this section, any person or other entity which provides insurancecoverage in this state for medical, surgical, chiropractic, physical therapy,speech pathology, audiology, professional mental health, dental, hospital oroptometric expenses, whether the coverage is by direct payment, reimbursement,or otherwise, shall be subject to the jurisdiction of the state insurancedepartment, unless the person or other entity shows that while providing theservices it is subject to the exclusive jurisdiction of another agency of thisstate or the federal government.

 

(b) A person or entity may show that it is subject to theexclusive jurisdiction of another agency of this state or the federal government,by providing to the insurance commissioner the appropriate certificate, licenseor other document issued by the other governmental agency which permits orqualifies it to provide those services.

 

(c) Any person or entity which is unable to show undersubsection (b) of this section that it is subject to the exclusive jurisdictionof another agency of this state or the federal government, shall submit to anexamination by the insurance commissioner to determine the organization andsolvency of the person or the entity, and to determine whether or not theperson or entity complies with the applicable provisions of this code.

 

(d) Any person or entity unable to show that it is subject tothe exclusive jurisdiction of another agency of this state or the federalgovernment, shall be subject to all appropriate provisions of this coderegarding the conduct of its business. If a person or entity is subject to theexclusive jurisdiction of another agency of this state or the federalgovernment, this fact shall be disclosed on all policy forms.

 

(e) Any production agency or administrator which advertises,sells, transacts or administers the coverage in this state described insubsection (a) of this section and which is required to submit to an examinationby the insurance commissioner under subsection (c) of this section, shall, ifthe coverage is not fully insured or otherwise fully covered by an admittedlife or disability insurer, nonprofit hospital service plan, or nonprofithealth care plan, advise every purchaser, prospective purchaser and coveredperson of such lack of insurance or other coverage. Any administrator whichadvertises or administers the coverage in this state described in subsection(a) of this section and which is required to submit to an examination by theinsurance commissioner under subsection (c) of this section, shall advise anyproduction agency of the elements of the coverage, including the amount of"stop-loss" insurance in effect.

 

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